Naira Steady after CBN Intervention, FX Reserves Hit $38.765bn
The naira steadied at N1534 per US dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday following the latest FX interventions of $81 million by the Central Bank.
According to the Apex Bank FX update on Monday, the local currency settled at N1534.20 per dollar at the official window, from N1534.71 at the close of the trading session on Friday.
The naira spot rate touched intraday high of N1535.50 per dollar, and some deals were consummated at the intraday low of N1532… Eventually, the official spot rate closed at N1535, reflecting possible demand pressures in the market.
The currency market had experienced a moderate decline in the value of the Nigerian naira versus the US dollar last week due to soft FX pressures before the authority stepped in. The CBN sold $81 million to banks and other authorized dealers to reflate the US dollar volume available for supply to companies and other eligible FX users.
The CBN FX intervention action stemmed the negative tide at the official window amidst a slowdown in FX inflows. Total FX inflows were reported to reduce by more than 25% week on week, settling at $979 billion from $1.31 billion registered the previous week.
Meanwhile, Nigeria’s gross external reserves sustained an uptrend and reached $38.765 billion, according to CBN updated data. Yield on Nigerian Treasury Bills Falls as CBN Cuts Rates
